Tree service
Tree Service Business Revenue Calculator
Projects revenue, where storms distort every monthly figure.
Result
Service lines rarely carry the same margin. Splitting them is the only way to see which part of the business is paying for the rest, which is frequently not the part that looks busiest.
Get a Free Business AuditHow the calculation works
Jobs per month times average value gives monthly revenue, scaled annually with margin applied. The caution specific to tree care is that the monthly figure is an unreliable guide, because revenue is partly weather-driven: a storm produces weeks of emergency work at premium rates, and a mild season produces very little. Annual figures across several years are the only honest basis for planning.
What moves the number
- Storm activity, which is unpredictable and can dominate a year.
- Average job value, which varies enormously between pruning and large removals.
- Seasonality, since dormant season work and growing season work differ.
- Whether maintenance contracts provide any base load.
Where this one goes wrong
Planning capacity on a storm year is how tree services end up over-equipped and over-staffed heading into a quiet one. Storm revenue is real and it is not a baseline, and the businesses that handle it well treat it as surplus to invest or reserve rather than as the new normal. The related opportunity is base load: maintenance and inspection agreements generate predictable revenue in the quiet months, and while they will never match storm work for value per hour, they keep crews employed and overhead covered when nothing is falling down.
Before you quote
- Plan capacity on non-storm years, not on a good one.
- Treat storm revenue as surplus rather than baseline.
- Build maintenance agreements for quiet season base load.
Questions
About this calculator
Can tree service revenue be forecast?
Only loosely, because a share of it is weather-driven. A storm produces weeks of emergency work at premium rates and a mild season produces very little. Annual figures across several years are the honest basis; a single good year is not a baseline to plan against.
What should be done with storm revenue?
Treated as surplus to reserve or invest rather than as the new normal. Businesses that plan capacity on a storm year end up over-equipped and over-staffed going into a quiet one, which is one of the more common ways a growing tree service gets into trouble.
How do you keep crews busy in quiet months?
Maintenance and inspection agreements, which generate predictable work when nothing is falling down. They will never match emergency work for value per hour, and they cover overhead and keep trained crews employed, which is worth more than the margin suggests.
The formula
revenue = jobs x average value; gross profit = revenue x margin
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How to use this calculator
- Repair jobs per month. Enter your own figure; the page starts at 28.
- Average value ($). Enter your own figure; the page starts at $1,250.
- Gross margin on this work (%). Enter your own figure; the page starts at 46%.
- Share of total revenue (%). Used to show what the whole business turns over.
The result updates as you type, so you can try a figure, see what it does to repair revenue per month, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Repair jobs per month | 28 |
| Average value | $1,250 |
| Gross margin on this work | 46% |
| Share of total revenue | 40% |
What comes out
| Result | Value |
|---|---|
| Repair revenue per month main result | $35,000 |
| Per year | $420,000 |
| Gross profit per year | $193,200 |
| Implied total business revenue | $1,050,000 |
The repair line brings in $420,000 a year and earns $193,200 of gross profit on it.
How sensitive the answer is
Holding everything else steady and changing only average value, this is what happens to repair revenue per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average value ($) | Repair revenue per month |
|---|---|
| $625 | $17,500 |
| $938 | $26,264 |
| $1,250 example above | $35,000 |
| $1,875 | $52,500 |
| $2,500 | $70,000 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Repair jobs per month
- A number, between 0 and 10000, starting at 28.
- Average value ($)
- A money amount, starting at $1,250.
- Gross margin on this work (%)
- A percentage, between 0 and 95, starting at 46%.
- Share of total revenue (%)
- Used to show what the whole business turns over.
What the results tell you
| Result | What it is |
|---|---|
| Repair revenue per month | The headline result. A money figure. |
| Per year | A money figure. |
| Gross profit per year | A money figure. |
| Implied total business revenue | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.